- International airlines operating in Nigeria have increased the exchange rate of Naira to the dollar for a ticket
- The new ticket price is set to make travelling to the US, UK, and other countries very expensive
- The decision to adjust the exchange rate for ticket prices is due to the struggle of airlines to send home their revenue
Foreign airlines operating in Nigeria have raised their Rate of Exchange (RoE) from N610 to N634 per dollar.
As a result, Nigerians travelling to the United States, United Kingdom, and other countries will experience increased ticket prices.
In recent months, there has been an increase in the number of Nigerians seeking to leave the country for purposes such as studying, working, or receiving medical treatment.
However, foreign airlines face difficulties repatriating their revenues, with over $800 million trapped in Nigeria as of April 2023, a significant increase from $744 million in March 2023.
To reduce the amount of money trapped in Nigeria, international airlines have deployed several methods to avoid collecting funds in naira, including selling tickets in dollars.
BusinessDay reports that since the decision was made, the exchange rate from naira to dollar has risen three times in three months.
The rate was increased from N460/$ to N551/$ in March 2023 and then again to N610/$ in April. As of May, it has risen to N634 per dollar.
Bankole Bernard, chairman of the Airlines and Passengers’ Joint Committee (APJC) of the International Air Transport Association (IATA), confirmed the rise and stated that the new N634 rate is slightly lower than the black market rate.
One-way ticket prices in economy class via Air France as of May 10 are:
- Lagos to the US: $1,604 economy ticket, now N1.01 million from N978,440 from the previous N610/$ exchange rate
- Lagos to Manchester: $1,108, also increased from N675,880 to N702,472.
- Lagos to France: $939, now N595,326 from N572,790.
- Lagos to Spain: $1,354, now N858,436 from N825,940